In Brief: Netflix to pay Comcast for smoother online video streaming

February 25, 2014 12:01 AM

February 25, 2014 12:01 AM

Netflix to pay Comcast for smoother streaming

LOS ANGELES -- Netflix has agreed to pay Comcast to ensure the subscription service's movies and TV shows stream seamlessly in a deal that underscores the power of distribution in the digital era -- and could mean higher rates for consumers.

The nation's leading online video service and the largest U.S. provider of home Internet access said the agreement is designed to ensure that Netflix subscribers can watch the new season of "House of Cards" and other content free of the pauses and hiccups subscribers have reported in recent months. The agreement may pave the way for similar arrangements between Netflix and other Internet service providers, including Verizon and AT&T.

Consumer advocates and technology policy experts reacted with concern over the ability of giant Internet access providers to extract payment from businesses wishing to reach people in their homes -- and the likelihood the extra costs eventually would be passed on to consumers.

Netflix and Comcast declined to reveal terms of their pact, which was announced Sunday.

Verizon expects margin and revenue increases

NEW YORK -- Verizon Communications said Monday that it's poised to expand its profit margins and increase revenue this year following the completion of its acquisition of Vodafone Group PLC's 45 percent stake in its wireless division.

The New York-based company said it still expects the acquisition to immediately boost its earnings per share by about 10 percent, excluding operational adjustments. The company also is targeting 2014 revenue growth of 4 percent, compared with 4.1 percent in 2013.

In addition, Verizon projected profit and margin increases for 2014 at both its wireless and landline businesses.

Holder urges action on data breaches

WASHINGTON -- Attorney General Eric Holder is urging Congress to require businesses to quickly alert consumers and law enforcement agencies in the wake of significant data breaches like the ones at discount retailer Target and at Neiman Marcus.

The attorney general said Congress should create a strong, national standard for notifying consumers whose information may have been compromised, empowering members of the public to protect themselves if they are at risk of identity theft.

The attorney general said action by Congress would enable law enforcement agencies to investigate such crimes thoroughly and would hold companies accountable when they fail to keep sensitive information safe. In a video posted on the Justice Department's website, Holder also said he favors exemptions for harmless breaches to avoid placing unnecessary burdens on businesses that act responsibly.

LG to offer its first smart watch this year

SEOUL, South Korea -- LG Electronics Inc. said it will launch a computerized wristwatch later this year, entering a nascent market where Samsung Electronics Co., Sony Corp. and smaller companies such as Pebble are already jostling for dominance.

Park Jong-seok, president of LG's mobile communications division, said early smart watch models failed to demonstrate why consumers should buy them. He said LG's strategy is not to release a half-baked product, but like other smart watches, the LG smart watch will be paired with a smart phone.

LG announced its smart watch plans at a mobile industry fair in Barcelona. Park made his comments during a pre-announcement briefing last week.

LG was a latecomer in both smart phones and tablets compared with its home rival Samsung Electronics Co., now the world's largest maker of smart phones.

Men's Wearhouse lifts bid for Jos. A Bank

FREMONT, Calif. -- Men's Wearhouse Inc., which has a location at the Millcreek Mall, is stepping up its pursuit of Jos. A. Bank Clothiers Inc., boosting the takeover offer for its rival by 10 percent to about $1.78 billion.

The move comes 10 days after Jos. A Bank announced that it was planning to buy the parent company of Eddie Bauer in a cash-and-stock deal valued at $825 million. But at the time Jos. A. Bank left the door open, saying it may end the Eddie Bauer deal if it receives an acquisition offer that is superior.

Men's Wearhouse said Monday it's now offering $63.50 per share for Jos. A. Bank, up from its prior $57.50 per share bid. The new offer is conditioned on Jos. A. Bank ending its deal for Eddie Bauer.